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Pacira Prices Offering, Shares Soar - Analyst Blog

Shares of
Pacira Pharmaceuticals, Inc
. (
PCRX
) soared 11.3% on the news of the pricing of the common stock at
an offer price of $64.00 per share.

We note that Pacira initiated a public offering of its common
stock worth $100 million earlier in the week.

Pacira expects net proceeds of approximately $96.0 million
from the offering after deducting underwriting discounts and
commissions and estimated offering expenses.

Moreover, underwriters have been granted an option to purchase
an additional 240,000 shares, with a 30-day window to do
so. The offering is expected to close by Apr 14, 2014.

We are encouraged by the recent bout of positive news at
Pacira. Pacira's lead drug Exparel, is approved by the U.S. Food
and Drug Administration (FDA) for administration into the
surgical site to produce post-surgical analgesia.

Exparel was launched in Apr 2012 and demand has been robust
ever since. Net Exparel revenues were $76.2 million in 2013.
Since its launch, 2,106 customers have ordered Exparel (data as
of Dec 31, 2013).

Pacira recently signed a strategic co-production partnership
deal with Patheon. As per the partnership agreement, Exparel will
be manufactured and packaged at Patheon's facility in the U.K.
Further, Patheon will construct the dedicated manufacturing
suites, install and validate the manufacturing equipments and
manufacture Exparel.

Pacira is working to expand the manufacturing capacity of
Exparel to meet the growing demand for the drug. Last month, the
FDA approved an additional manufacturing suite (Suite C) for
Exparel.

The site at Patheon will be designed to mirror the recently
approved Suite C manufacturing facility. We expect the company to
use the funds for further commercilization of Exparel.

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